Ripple CEO Debanked After 25 Years: Regulatory Pressures Force Swift Account Closure

Ripple’s CEO, Brad Garlinghouse, recently revealed that his bank account of 25 years was abruptly closed due to his position in the cryptocurrency industry, illustrating the growing regulatory scrutiny surrounding crypto executives and companies in the U.S.

Garlinghouse Faces Sudden Bank Account Termination

In a recent interview, Garlinghouse disclosed that he received a call from a major bank he’d been with for over two decades, informing him he had just five days to withdraw his funds. He described the experience as surprising yet frank, stating that the bank admitted its decision was driven by his association with Ripple and the intensified federal regulatory focus on the crypto industry.
According to Garlinghouse, the bank’s representatives openly acknowledged, “Having notable figures in crypto on our client list subjects us to more scrutiny from federal regulators, and we want to avoid that.”

Garlinghouse pointed out that, while this move might not be strictly legal, it reflects an environment where traditional institutions are increasingly wary of engaging with cryptocurrency firms and leaders. He expressed concern about the broader implications if other banks adopted similar stances, which could effectively cut off crypto executives from traditional financial services.

Despite this setback, Garlinghouse remains optimistic about regulatory changes in the near future, especially after the next U.S. election, which he believes could bring about more favorable policies for crypto innovation.

Ripple’s SEC Battle and a Shift in Regulatory Climate

Garlinghouse also touched on Ripple’s legal struggle with the U.S. Securities and Exchange Commission (SEC), highlighting a critical court ruling that XRP, Ripple’s token, is “not a security.” He described this as a major victory for the crypto sector and emphasized the need for consistent, transparent regulations across digital assets like bitcoin and ethereum.
As regulatory pressures mount, Garlinghouse advised U.S.-based crypto companies to consider foreign incorporation to ensure stability and access to clear legal guidance, noting that other jurisdictions are taking a more progressive approach toward blockchain and crypto innovation.

In reflecting on the U.S. government’s stance, Garlinghouse warned that the country could miss out on strategic opportunities in blockchain if it doesn’t adopt a more supportive framework. He concluded that, with the right regulatory adjustments, the U.S. might recognize blockchain as essential to its financial evolution, paving the way for growth and innovation in the industry.

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